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Audit findings

AUDITORS, by their very job description, are not expected to be warm and cuddly types. In private companies, especially those listed in the stock exchange, there are even three layers of these corporate sleuths looking for dead bodies in the closet. (It’s okay, Sir. It’s just a mouse.) There are the internal audit department, the audit committee of the board (sometimes supplemented by corporate governance and related party transactions), and the external auditor. The last one certifies that all regulatory requirements are followed, and the numbers are soundly reported.

Auditing as a function is not a career booster. Few heads of this under-appreciated unit make it to CEO. A positive way of characterizing the work of the auditor is that it involves quality control. The auditor makes sure that the organization is following the rules in order to meet its objectives and be able to give value to the stakeholders. Flaws in the processes and controls are pointed out in order to get remedial measures in place.

So, why is auditing such a thankless job?

Audit findings are intended to look for unusual transactions sometimes involving very senior officers. Those in the decision loop are asked to give “some context” on an unusual transaction, like unliquidated cash advances for foreign travel that have been outstanding for six months or an item in operating expenses for “home repair.” Documents like receipts and names of payees on checks need to be produced for evaluation.

The larger the organization, the bigger its audit department. The more numerous too are the transactions as well as the value and quantities involved that need to be analyzed and reported. Can there be a bigger organization than the National Government?

And when audit findings, especially when those involved feel they are protected like an endangered species, go into billions and trillions (that’s 12 zeros) then public attention becomes a factor. In a political year, such audit findings can affect popularity ratings of both protector and protected… in an unbiased survey.

The defense of being a shamed victim is a bit of a stretch. The plea to keep the findings under wraps only shows that the only possible explanations for the unexplained numbers lead to unexplained wealth and expensive watches.

Before we get carried away with large organizations, let’s go back to the corporation.

In the acquisition of a company, audit findings play a big role. They highlight such anomalies in decision-making like self-dealing, conflict of interest, and flawed bidding procedures. (How much do face masks really cost if you buy 40 million? Is there a volume discount?) Auditors are also responsible for the fine print in financial statements, especially the entries with asterisks. These “notes” at the bottom explain such entries as advances to affiliates and stocks “marked to market.”

The valuation of a company to be acquired has to undergo “due diligence” to check soft numbers, estimates, and overvalued properties. Of course, an unquantifiable item like “goodwill” (the preeminence of the brand and its leadership position in the market) is supposed to iron out the kinks and close a deal.

As for our large organization which is not supposed to be for sale, not even to an eager encroacher, the role of audit findings can be different. They reflect the governance values of the leadership. An order to put back the findings in the filing cabinet and not release them to the public reflects a lack of transparency.

No accusations are being made, only a request to explain unusually high numbers. Are the unexplained numbers also driving other decisions like lockdowns and the attacks on a messenger bearing bad news?

Organizations, big and small, have their own stakeholders. Auditors eventually look out for the interests of these interest groups. If there are valid explanations and supporting documents for even the big numbers, that the amounts were spent for the public welfare and not private gains, then it’s on to the next question.

The plea to be left alone to get better sleep and not be bothered by the findings or the need to justify actions (and cash) taken is just unacceptable. Of course, having a defender at the top (let him get his sleep) can provide comfort to the insomniac. But not to the stakeholders who may not want to sleep through this. Their angry voices will be heard… soon enough.

 

Tony Samson is Chairman and CEO of TOUCH xda

ar.samson@yahoo.com

Afghanistan exit marks the end of US nation-building, says Biden

US PRESIDENT Joseph R. Biden is seen in this file photo. — REUTERS

FACING sharp criticism over the tumultuous US withdrawal from Afghanistan, President Joseph R.  Biden said on Tuesday it was the best available option to end both the United States’ longest war and decades of fruitless efforts to remake other countries through military force.

Mr. Biden portrayed the chaotic exit as a logistical success that would have been just as messy even if it had been launched weeks earlier, while staying in the country would have required committing more American troops.

“I was not going to extend this forever war,” he said in a speech from the White House.

Earlier in the day, the Taliban, which seized control of Afghanistan in a lightning advance this month, fired guns into the air and paraded coffins draped in US and NATO flags as they celebrated their victory.

In his first remarks since the final pullout of US forces on Monday, Mr. Biden said 5,500 Americans had been evacuated and that the United States had leverage over the Islamist militant group to ensure 100 to 200 others could also depart if they wanted to.

He said Washington would continue to target militants who posed a threat to the United States, but would no longer use its military to try to build democratic societies in places that had never had them.

“This decision about Afghanistan is not just about Afghanistan. It’s about ending an era of major military operations to remake other countries,” he said.

The Taliban now control more territory than when they last ruled before being ousted in 2001 at the start of America’s longest war, which took the lives of nearly 2,500 US troops and an estimated 240,000 Afghans, and cost some $2 trillion.

More than 123,000 people were evacuated from Kabul in a massive but chaotic airlift by the United States and its allies over the past two weeks, but many of those who helped Western nations during the war were left behind.

Mr. Biden said the only other option would have been to step up the fight and continue a war that “should have ended long ago.” Starting the withdrawal in June or July, as some have suggested, would only have hastened the Taliban’s victory, he said. But Mr. Biden’s decision was far from popular and he has faced criticism from Republicans and fellow Democrats, as well as from foreign allies.

US Senate Republican leader Mitch McConnell said the departure had abandoned Americans behind enemy lines.

“We are less safe as a result of this self-inflicted wound,” he said in his home state of Kentucky. 

ELATION AND FEAR
The US invasion in 2001, which followed the Sept. 11 attacks on New York and Washington, stopped Afghanistan from being used by al Qaeda as a base to attack the United States and ended a period of Taliban rule from 1996 in which women were oppressed and opponents crushed.

There was a mixture of triumph, elation and fear on the streets of Afghanistan as the Taliban celebrated their victory.

“We are proud of these moments, that we liberated our country from a great power,” Taliban spokesman Zabihullah Mujahid said.

While crowds lined the streets of the eastern city of Khost for a mock funeral with coffins draped with Western flags, long lines formed in Kabul outside banks closed since the fall of the capital.

“I had to go to the bank with my mother but when I went, the Taliban (were) beating women with sticks,” said a 22-year-old woman who spoke on condition of anonymity because she feared for her safety.

“It’s the first time I’ve seen something like that and it really frightened me.”

The Taliban’s previous government brutally enforced a radical interpretation of Islamic law but Mr. Biden has said the world would hold them to their recent commitments to uphold human rights and allow safe passage for those wanting to leave Afghanistan.

Western donors have said future aid to the war and drought-ravaged country will be contingent on those promises being met.

European Union countries proposed to step up assistance to Afghanistan and its neighbors, amid fears that up to half a million Afghans could flee their homeland by the end of the year.

The United States last week issued a license authorizing it and its partners to continue to facilitate humanitarian aid in Afghanistan even though the Taliban is blacklisted by Washington, a Treasury Department official told Reuters.

The license authorizes the US government and its contractors to support humanitarian assistance to people in Afghanistan, including the delivery of food and medicine, despite US sanctions on the Taliban.

Pentagon spokesman John Kirby said the United States was concerned about the potential for Taliban retribution and mindful of the threat posed by ISIS-K, the Islamic State affiliate that claimed responsibility for a suicide bombing outside Kabul airport on Thursday that killed 13 US service members and scores of Afghan civilians.

At least seven Taliban fighters were killed in clashes with anti-Taliban rebels in the Panjshir valley north of the capital on Monday night, two members of the opposition group said. — Reuters

Sinovac investor reports Chinese coronavirus vaccine windfall

PHILIPPINE STAR/ MICHAEL VARCAS

AN INVESTOR in Sinovac Biotech Ltd. reported a nearly six-fold increase in first-half profit, giving a glimpse into the windfall made during the coronavirus pandemic by the Chinese vaccine developer.

Sales of more than one billion doses of the COVID-19 shot, known as CoronaVac, helped Sino Biopharmaceutical Ltd., which holds a 15% stake in a subsidiary of Beijing-based Sinovac, register profit of 8.48 billion yuan ($1.3 billion) in the first six months of 2021, the Hong Kong-listed company said on Tuesday. The firm added that its associates and joint ventures, including the Sinovac unit, contributed 6.91 billion yuan of that amount.

The drugmaker’s earnings offer the first hint of the fortune Sinovac has amassed from its widely distributed vaccine. Sinovac, whose shares have been suspended on the Nasdaq exchange since early 2019, has yet to report any results for 2021. Sino Biopharmaceutical didn’t provide further breakdowns from individual units it has invested in.

Shares of Sino Biopharmaceutical rose as much as 1.7% on Wednesday.

The unprecedented global inoculation campaign has created hefty profits for some of the world’s leading vaccine developers. Pfizer, Inc. reaped $7.8 billion in sales from its highly effective mRNA shot it co-developed with Germany’s BioNTech SE and expects it bring in $33.5 billion in revenue this year.

Sino Biopharm, which in recent years has embarked on a transition from generic drugmaker to one that churns out more innovative medicines against cancer, made a $500-million investment last year in the Sinovac unit, a stake that is now worth about three times that much.

Dogged by doubts surrounding its wide array of efficacy readouts from late-stage trials and less effective in preventing symptomatic COVID compared to many of the western developed shots, Sinovac’s vaccine has nonetheless been approved for use in more than 50 countries and has received a stamp of approval by the World Health Organization (WHO).

The WHO-backed Covax facility, which is attempting to provide vaccines for poor countries, has also ordered hundreds of millions of doses from Sinovac and another Chinese company, Sinopharm. — Bloomberg

Lubrication solutions can increase productivity and reduce downtime

Downtime can be reduced and productivity can be maximized. This was the takeaway of attendees from the marine transport sector and Philippine domestic private shipping companies during a webinar held last August 18, 2021 by Castrol Global Marine and North Trend Marketing Corp.

The webinar, Build Your Bounce: “Extend the Life of your Fleet’s Engines for Different Operating Conditions” is part of the Castrol Solutions Talk Webinar. It aims to educate the marine sector on how they can maximize productivity and improve their operations with less downtime, even during this time of pandemic. Lending their support during the webinar were Lucio Lim Jr., Chairman of Philippine Coastwise Shipping Association Inc., and Capt. Jeffrey Solon, Deputy Executive Director of the Maritime Industry Authority. Attendees included business owners, chief engineers and technical engineers of several domestic private shipping companies engaged in cargo and transportation.

RIGHT PRODUCTS, RIGHT PLACE, RIGHT SUPPORT

During the webinar, David Bollard, Castrol UK- Global Indirect Sales Director, presented Castrol’s product lines and capabilities. “Maximizing performance directly translates to maximizing profits,” he said. “Choosing the right engine oil is critical when it comes to marine engines as well as power generation engines. The goal is to reduce the wear on the engine, prolonging its life and keeping maintenance costs to a minimum.”

Castrol’s MHP range of diesel engine lubricants is where compliance and solutions are the same thing. It allows companies to simplify and reduce overall lubricant usage because its high load-carrying capability and high gear performance means it can be used as a common oil for both engine and transmission systems.

1st Line Photo L to R:
• NTM National Sales Manager Lubes Division- Ms. Grace Torrejas
• NTM Distributor Chief Engineer- Ms. Rex Gurrea
• Webinar Host- Micah Nepomuceno
2nd line Photo
• Castrol UK Indirect Sales Director- Mr. David Bollard
• Castrol Dubai Regional Technical Services Manager-
Mr. Gurdeep S. Taluja

It can withstand the pressure inside high-performance engines and keep them from wearing down. Compared to API CD oil, Castrol MHP 154 and MHP 153 thrive in high temperatures. It keeps engines clean because it is formulated for increased detergency so it can easily remove the deposits. Combined with its endurance even under extreme heat and resistance to harmful deposits, your engine can expect to have a cleaner piston ring zone.

This means longer intervals between overhauls and reduced wear and tear, ultimately leading to reduced costs.

OPTIMIZED FLUID PERFORMANCE AND IMPROVED PRODUCTIVITY

In addition, Castrol’s Advanced Used Oil Analysis helps optimize fluid performance and improve productivity. A new generation of technology service provided by Castrol Labcheck Next Generation, Used Oil Analysis has helped enhance the performance and extend the lifespan of critical machinery for many years. Monitoring lubricant conditions within the internal environment of machinery is the most cost-effective way to extend lubricant drain intervals, prevent catastrophic failure and increase the lifespan of equipment. The advances offered by Castrol’s Labcheck Next Generation can help enhance these benefits even further, offering a full array of tests designed to measure the physical properties of lubricants and fluids in heavy duty equipment.

“By offering clear, analytical data and professional recommendations, our Lab Check Next Generation oil analysis helps the users to identify and measure lubricant conditions and contamination, assess equipment conditions, prevent breakdowns and maximize component lifespan,” said Gurdeep S Taluja, Castrol Dubai Regional Technical Services Manager.

Mr. Lucio Lim Jr. – Chairman, Philippine Coastwise Shipping Association Inc. Capt. Jeffrey Solon- Deputy Executive Director, Maritime Industry Authority

“NTM Technical and Engineering services have proven to help our customers in the marine sector to maximize their investment when it comes to lubrication solutions for their engine vessels. We help them by bringing the Castrol way of Used Oil Analysis with the right use of advanced technical equipment,” said Rex Gurrea, Distributor Chief Engineer of North Trend Marketing Corp.

FROM GLOBAL TO LOCAL

Castrol announced earlier this year its partnership with North Trend Marketing Corp., a Cebu-based company which has been in the business of distribution of world-class, premium lubricants and tires for 14 years. With its supply chain capabilities and broad technical experience for lubrication solutions, North Trend Marketing Corp. is poised to deliver Castrol products with the right approach of technical services in the domestic and international marine sector.

“North Trend has always been committed to providing the country’s marine sector with high-quality lubricants,” said Grace Torrejas, North Trend Marketing’s National Sales Director- Lubes Division “With the high-caliber product lines and technical services powered by Castrol, we are confident that we would be able to foster a better distribution in the country. We believe that Castrol marine product lines were specially formulated to adapt to the needs of heavy-duty equipment to enable them to accomplish unprecedented productivity goals,” she said.

With Castrol’s presence in over 820 ports and 82 countries, customers can rely on a global network of technical service, customer service, and distributor partner teams. It is further strengthened in the Philippines with North Trend Marketing Corp’s four major warehouses and depots strategically located in Manila, Cebu, Davao and Cagayan De Oro.

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Before buying, Filipino online shoppers visit around 8 websites — Facebook

Filipino consumers are embracing digital shopping, as the pandemic pushes them to be more tech-savvy and deliberate with their purchasing decisions. They are also more willing to buy products from a wider range of online stores, according to a report by Facebook Inc. and Bain & Co.  

More than 16,000 people in Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam took part in the survey conducted in June, with all respondents above 15 years of age.  

Filipinos were found to hop across an average of 7.8 websites before making a purchase decision in 2021, compared to just 4.3 websites in 2020.   

“These findings point to the fact that people increasingly want to feel that they’re making the right purchase decisions. Now is the time for brands to be brave and reimagine the channels and platforms on which they can stand out and be discovered,” said John Rubio, country director of Facebook in the Philippines, in a statement.  

Additionally, 45% of Filipino respondents said they’re willing to try stores they’ve never heard of before, up from 36% the year prior, tied to findings that they purchase from an average of 8.2 product categories in 2021, compared to just 4.7 in 2020.  

With this increase in exploration, 51% of consumers in the Philippines also said they switched their most purchased brand in the last three months — on par with Southeast Asia, based on the report.  

Purchasing decisions are influenced by Environmental, Social, and Governance (ESG) factors, with more than 80% of Filipino respondents saying that they would pay up to 10% more for sustainable and socially conscious products. ESG was also found to be in the top three reasons in Southeast Asia for switching brands, the study showed.  

Findings revealed significant improvement in e-commerce marketplace satisfaction, with the Net Promoter Score in the Philippines jumping to 64% in 2021 from 26% in 2020 — meaning better customer satisfaction.  

“People in Southeast Asia are forming new habits related to online discovery, consideration and purchase,” said Benjamin Joe, vice-president of Facebook in Southeast Asia. “For both new and established brands, these shifts signal the need to rethink traditional e-commerce experiences and find creative ways to inspire and connect with customers online.” — Brontë H. Lacsamana

Crypto wallet MetaMask user base surges, PHL makes up 20%

MetaMask, a non-custodial crypto wallet, grew 1,800% in terms of monthly active users this past year, with 20% of its 10 million user base coming from the Philippines.  

The surge in Filipino users is buoyed by the popularity of NFT (non-fungible token)-based online video game Axie Infinity, which allows players to earn cryptocurrency.   

A cryptocurrency (or “crypto”) is a digital currency that can be used to buy goods and services. Cryptos, which include Bitcoin, Ethereum, and Binance Coin, use an online ledger to secure online transactions.   

Crypto users can either keep their cryptos on a crypto exchange (similar to keeping one’s stocks with a stock broker), or in crypto wallets (see sidebar). 

“Users who hold funds in MetaMask can do much more than hold those funds as an investment. They can use those funds to interact with countless numbers of decentralized protocols and smart contracts,” said Jacob Cantele, MetaMask’s lead of operations, in an e-mail to BusinessWorld.  

“They also have custody over their funds. Self-custody is an important step towards freedom, security, and censorship-resistance,” he added.  

MetaMask is both a mobile app and a browser extension that functions as a crypto wallet for the Ethereum blockchain as well as any Ethereum-compatible network like Polygon, Arbitrum, and Optimism.  

The company’s growth — from 545,080 monthly active users in July 2020 to 10,354,279 in August 2021 — has tracked closely with that of Ethereum, which supports a decentralized finance (DeFi) ecosystem with over $80 billion in assets under management.    

MetaMask is run by ConsenSys, a global Ethereum software company, and was founded in 2015 with the aim of making Ethereum usable through web applications.  

The “meta” part of the company name, Mr. Cantele shared, refers to how the wallet allows people to access the decentralized web and control their data and funds. The “mask” part, meanwhile, refers to how the wallet allows users to control which sites can control which accounts, making access to the decentralized web safer.  

USER GEOGRAPHY
In the Philippines, the popularity of the crypto wallet is due to the rise of play-to-earn games like Axie Infinity.  

Per a B-Side episode in July, the play-to-earn movement helps meet the demands of an unemployed or underemployed player base. Players collect rewards in the form of NFTs within a game, and convert these to real cash.  

MetaMask, however, isn’t confined to a single game or a single use case.  

“It lets players access thousands of games, to collect art, to engage in commerce, and so much more,” said Mr. Cantele. “MetaMask allows gamers to carry their accounts and NFTs across thousands of applications and sites. A gamer can earn an NFT in one game, and then carry that NFT over to another video game or sell it on an online marketplace.”  

Apart from the Philippines, the top 15 countries using MetaMask are the United States, Vietnam, United Kingdom, China, India, Russia, Brazil, Indonesia, Thailand, Turkey, Germany, France, Canada, and Spain. Asia is the top region in terms of users’ growth.  — Patricia B. Mirasol

 

SIDEBAR | Custodial wallets versus non-custodial wallets  

Custodial wallets are crypto wallets in which the private keys are held by a third-party custodian. Operating like digital banks, these custodians have full control over user funds, with users only able to give permission to send or receive payments. Examples include Coinbase, Voyager, and KuCoin.  

Non-custodial wallets, on the other hand, allow users to hold their private keys, giving them full control of their funds. Examples include ZenGo, Nuri, and Edge. 

Pakistan frets over security threats from neighboring Afghanistan

REUTERS

ISLAMABAD — There is growing concern among Pakistani officials about security in neighboring Afghanistan, as the Taliban tries to form a government and stabilize the country following the departure of US and other foreign forces.  

Islamabad is particularly worried about militant fighters from a separate, Pakistani Taliban group crossing from Afghanistan and launching lethal attacks on its territory. Thousands of Pakistanis have been killed in jihadist violence in the last two decades.  

Underlining the security threat within Afghanistan, in the last few days a suicide bombing claimed by an Afghan offshoot of Islamic State outside Kabul airport killed more than 100 people, including 13 US troops.  

A rocket attack on the airport followed, and on Sunday militant gunfire from across the border in Afghanistan killed two Pakistani soldiers.  

“The next two to three months are critical,” a senior Pakistani official said, adding that Islamabad feared a rise in militant attacks along the Afghan-Pakistan border, as the Taliban tried to fill a vacuum left by the collapse of Afghan forces and the Western-backed administration.  

“We [the international community] have to assist the Taliban in reorganizing their army in order for them to control their territory,” the source added, referring to the threat posed by resurgent rival militant groups including Islamic State.  

US officials have repeatedly accused Pakistan of supporting the Afghan Taliban, which fought in a civil war in the mid-1990s before seizing power in 1996.  

Islamabad, one of the few capitals to recognize the Taliban government that was toppled in 2001, denies the charge.  

Pakistan’s government has said that its influence over the movement has waned, particularly since the Taliban grew in confidence once Washington announced the date for the complete withdrawal of US and other foreign troops.  

The official, who has direct knowledge of the country’s security decisions, said Pakistan planned to send security and intelligence officials, possibly even the head of the powerful Inter-Services Intelligence (ISI) agency, to Kabul to help the Taliban reorganize the Afghan military.  

An Afghan Taliban spokesperson did not immediately respond to Reuters’ requests for comment on security relations with Pakistan.  

PAKISTAN EXPECTS TALIBAN COOPERATION 
Though recognition of a new Taliban government was not immediately on the table, the official said, the world should not abandon Afghanistan.  

“Whether we recognize the Taliban government or not, stability in Afghanistan is very important.”  

The official warned that Islamic State Khorasan (ISIS-K), a loosely affiliated offshoot of Islamic State in Syria and Iraq, was actively looking to launch attacks and recruit new fighters.  

Left unhindered, it would almost certainly grow from relatively small numbers currently.  

The United States recently launched two drone strikes targeting ISIS-K militants, including one in Kabul and one near the eastern border with Pakistan.  

The strikes followed a pledge by President Joe Biden that the United States would hunt down the militants behind the recent suicide bombing.  

The Taliban criticized the strikes as a “clear attack on Afghan territory.”  

Pakistan, whose armed forces also possess unmanned drones as well as conventional aircraft, will avoid intervening directly in Afghanistan if at all possible, said the official.  

The Afghan Taliban have reassured their neighbor that they will not allow their territory to be used by anyone planning attacks on Pakistan or any other country.  

But Islamabad expected the Afghan Taliban to hand over militants planning attacks against Pakistan, the official added, or at least force them from their mutual border, where Pakistani troops have been on high alert in recent weeks. — Gibran Naiyyar Peshimam/Reuters

Health workers protest neglect as COVID-19 strains hospitals

PHILIPPINE STAR/ MICHAEL VARCAS
A health worker from St. Luke’s Medical Center demands the release of frontliners’ benefits during a protest held Aug. 30. — PHILIPPINE STAR/ MICHAEL VARCAS

Scores of healthcare workers protested in the Philippine capital on Wednesday to demand an end to what they called government neglect and unpaid benefits, as pressure builds at hospitals fighting one of Asia’s longest-running coronavirus epidemics.  

Protesters wearing protective medical gear gathered around the Department of Health (DoH) and held placards demanding their risk allowances and hazard pay, and the resignation of Health Secretary Francisco T. Duque III.  

Medical staff have been overwhelmed during the pandemic and 103 have died from coronavirus disease 2019 (COVID-19), among some 33,400 coronavirus fatalities in the Philippines.  

“It is sad that many of us have died, many of us became sick, and many have resigned or opted to retire early, yet we are still kneeling before the DoH to give us our benefits,” Robert Mendoza, president of the Alliance of Health Workers, said from the back of a pickup truck.  

President Rodrigo R. Duterte gave health and budget ministries 10 days from Aug. 21 to pay health workers, following nurses’ threats to resign and unions warning of strikes.  

“The government promised it will give the benefits today but up to now, it has not. I pity us because we are the ones begging,” said nurse Nico Oba.  

The Philippine Nurses Association held its own protest virtually to demand better working conditions and more hospital staff.  

Many facilities are overstretched as the highly transmissible Delta variant sees deaths climb and cases soar, like elsewhere in Southeast Asia, where vaccination rates are low compared to Europe and North America.  

The Philippines was the first country outside China to report a coronavirus death and has since logged nearly 2 million cases, including a daily record 22,366 on Monday.  

Mr. Duterte has stood by Mr. Duque during repeated calls for his resignation as far back as last year, the latest after state auditors flagged “deficiencies” in more than $1 billion in COVID-19 spending. — Adrian Portugal/Reuters

Some 30% of global tree species at risk of extinction — report

Heris Luiz Cordeiro Rocha/CC BY-SA 3.0/Wikimedia Commons

Almost a third of the world’s tree species are at risk of extinction, while hundreds are on the brink of being wiped out, according to a landmark report published by Botanic Gardens Conservation International (BGCI) on Wednesday.  

According to the State of the World’s Trees report 17,500 tree species — some 30% of the total — are at risk of extinction, while 440 species have fewer than 50 individuals left in the wild.  

Overall, the number of threatened tree species is double the number of threatened mammals, birds, amphibians and reptiles combined, the report said.  

“This report is a wake-up call to everyone around the world that trees need help,” BGCI Secretary General Paul Smith said in a statement.  

Among the most at-risk trees are species including magnolias and dipterocarps — which are commonly found in Southeast Asian rainforests. Oak trees, maple trees and ebonies also face threats, the report said.  

Trees help support the natural ecosystem and are considered vital for combating global warming and climate change. The extinction of a single tree species could prompt the loss of many others.  

“Every tree species matters — to the millions of other species that depend on trees, and to people all over the world,” Mr. Smith added.  

Thousands of varieties of trees in the world’s top six countries for tree-species diversity are at risk of extinction, the report found. The greatest single number is in Brazil, where 1,788 species are at risk.  

The other five countries are Indonesia, Malaysia, China, Colombia, and Venezuela.  

The top three threats facing tree species are crop production, timber logging and livestock farming, the report said, while climate change and extreme weather are emerging threats.  

At least 180 tree species are directly threatened by rising seas and severe weather, the report said, especially island species such as magnolias in the Caribbean.  

Though megadiverse countries see the greatest numbers of varieties at risk of extinction, island tree species are more proportionally at risk.  

“This is particularly concerning because many islands have species of trees that can be found nowhere else,” the report added. — Oliver Griffin/Reuters

China shuts American Chamber of Commerce in Chengdu, organization says

REUTERS

SHANGHAI — Chinese authorities have instructed an American Chamber of Commerce in the southwestern city of Chengdu to cease operations, officials with the organization said on Tuesday.  

The chamber notified members on Monday that, in accordance with Chinese laws and regulations, it had to stop operations and “no longer carry out any activities in the name of the American Chamber of Commerce in Southwest China.”  

The statement, seen by Reuters, did not provide a specific reason.  

The chamber promotes trade and investment between the United States and the region.  

Benjamin Wang, the group’s chairman, told Reuters by WeChat message that it was in discussions with local authorities about its registration and future direction.  

China’s Ministry of Civil Affairs (MCA) appeared to be enforcing a rule that countries maintain only one official chamber of commerce in the country, Wang said.  

The MCA did not immediately respond to a request for comment.  

The Chengdu chamber is not affiliated with the American Chamber of Commerce in China, a business advocacy group based in Beijing with offices in several other cities.  

In July 2020, China closed the US consulate in Chengdu in retaliation for being ousted from its Houston consulate a week earlier.  

A US State Department spokesperson urged Chinese authorities to work with the chamber to resolve any issues surrounding its registration and future operation, adding that the United States was unaware of any link with the shuttering of the consulate.  

“This closure is only the latest example of how the PRC’s opaque, arbitrary regulatory environment is contributing to an investment climate that is increasingly hostile towards foreign businesses,” the official said, using the acronym for the People’s Republic of China. — Andrew Galbraith and Gabriel Crossley/Reuters 

Ireland to drop almost all COVID-19 restrictions in October

PXFUEL

DUBLIN — Ireland, which had one of Europe’s longest coronavirus disease 2019 (COVID-19) lockdowns, will drop almost all pandemic restrictions in October after one of the continent’s most successful vaccine rollouts, Prime Minister Micheal Martin said on Tuesday.  

From Oct. 22, the requirement for vaccine certificates in bars and restaurants will be dropped, as will all restrictions on the numbers attending indoor and outdoor events.  

As part of a phased easing of restrictions, the government is recommending the reopening of theaters and cinemas at 60% capacity next week and a return of non-essential workers to offices from Sept. 20.  

“Because of the effort of our vaccination team and because you have stepped up to the mark and taken the vaccine when it was offered, we are now entering a whole new phase of the pandemic,” Mr. Martin said in a televised address.  

Almost 90% of adults in Ireland are fully vaccinated as are 80% of those over 12 years old.  

Indoor dining in cafes, bars and restaurants was banned in Ireland for much of the 16 months to July, when the government opened the sector to people with vaccine certificates.  

The Irish government in recent weeks has been heavily criticized by the live-events sector as large concerts took place in the United Kingdom, which dropped most restrictions on July 19 but has a lower level of vaccinations.  

Mr. Martin struck a note of caution, however, warning of an increase in case numbers in the coming weeks before an expected decline.  

“We are very unlikely to ever be able to be rid of the virus completely,” he said. — Conor Humphries/Reuters  

Banned and blocked: LGBT+ websites censored from Russia to Indonesia

UNSPLASH

LONDON — When Russian cities started banning Pride marches, LGBT+ rights activist Mikhail Tumasov took to the internet to make sure his organization kept its voice. But state authorities were quick to catch up.  

Mr. Tumasov said the country’s internet regulator had tried repeatedly to shut down his group’s website under the terms of Russia’s 2013 “anti-gay propaganda” law, which bans the dissemination of LGBT+ information to children.  

So far, his organization — the Russian LGBT Network — has been able to challenge the shutdowns in the courts.  

“Somehow we succeeded,” Mr. Tumasov said.  

“So our website is still up and our social profiles are still up. But not everyone is so successful,” he told the Thomson Reuters Foundation by phone.  

According to a major global report published this week by three rights organizations, 32 different LGBT+ websites were blocked at least once on Russian internet providers between mid-2016 and mid-2020.  

“News websites on LGBTIQ-related topics were most commonly blocked, followed by cultural and human rights sites,” said the report published by OutRight Action International, the University of Toronto’s Citizen Lab and the Open Observatory of Network Interference (OONI).  

Same-sex relations in Russia are legal, but attitudes about sexuality and gender identity remain conservative for the most part.  

In a 2020 referendum, voters backed an amendment to the constitution to allow marriage only between a man and a woman —  effectively closing the door on potential future legislation in favour of same-sex weddings.  

“Governments filter LGBTIQ websites using a variety of methods, but typically consisting of legal and technical methods,” said Irene Poetranto, senior researcher at the Citizen Lab tech human rights group and one of the report’s co-authors.  

These can include passing laws that restrict “pornography” as well as specifically targeted anti-LGBT+ legislation, Ms. Poetranto said in e-mailed comments.  

“For example, in Russia, the anti-gay propaganda law was enacted supposedly to protect children/minors and thus, LGBTIQ website censorship is conducted for the same reason.”  

Russia’s internet regulator Roskomnadzor did not immediately respond to an emailed request for comment.  

‘DANGERS TO NATIONAL SECURITY’  

Besides Russia, the report focused on Indonesia, Malaysia, Iran, Saudi Arabia and the United Arab Emirates (UAE), using software developed by OONI that measures different forms of internet censorship.  

The six countries were chosen because they were known to monitor LGBT+ content, Ms. Poetranto said.  

According to the report, website bans violate Article 19 of the International Covenant on Civil and Political Rights (ICCPR), of which Indonesia, Iran, and Russia are signatories.  

The multilateral treaty says “everyone shall have the right to freedom of expression … (including) freedom to seek, receive and impart information and ideas of all kinds, regardless of frontiers”.  

Of the countries analysed, Iran blocked the highest number of website addresses linked to LGBT+ content.  

“In total, 75 unique LGBTIQ URLs were detected as blocked in (Iran), followed by the UAE, where 51 unique LGBTIQ URLs were found to be blocked,” the report said.  

Five years ago, Indonesia’s government said it would move to ban LGBT+ sites, and at least 38 LGBT+ websites are currently blocked in the country of 270 million people, the study found.  

Lini Zurlia, advocacy officer of regional LGBT+ organization ASEAN SOGIE Caucus, was working at Arus Pelangi, an Indonesian LGBT+ advocacy group, when the government announced the crackdown.  

She said the organization had received a letter from the government saying it was “on the list” of sites to be shut down, though it eventually escaped a ban.  

“The LGBTIQ community is characterized by governments as dangers to national security and threats to the moral fabric of society,” Ms. Zurlia said in emailed comments.  

Indonesia’s Communication and Information Technology Ministry did not immediately respond to a request for comment.  

Local activist groups are not alone in having their websites targeted.  

Grindr, one of the world’s most popular gay dating apps, has been banned in countries including Indonesia, Lebanon, Qatar, Saudi Arabia, Turkey, and the UAE.  

“Grindr is not directly involved in challenging any bans by foreign governments,” a spokesman said in emailed comments.  

“But we are aware of community-based efforts in several places to have bans overturned and strike back against attempts to limit LGBTQ life locally.”  

In Russia, Mr. Tumasov said the internet provided a vital social lifeline to LGBT+ people, with the website clampdown reflecting broader discrimination and disregard for their rights.  

“The LGBTI community’s freedom of speech is suffering from a lot of threats from homophobic people,” he said. — Hugo Greenhalgh/Thomson Reuters Foundation 

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